As Australians navigate through the digital age, the way people handle their finances could be undergoing a significant shift.

The Australian Banking Association (ABA) has recently shed light on the future of banking in Australia, and it could be a dramatic change, especially for seniors.

With the decline of cash transactions and the rise of digital payments, the traditional bank branch as we know it is poised for a transformation.

ABA Head Anna Bligh highlighted that Australia could be in the midst of the 'biggest transformation in the history of the country', especially when it comes to banking services.

The digitisation of financial transactions could slowly become a new reality for the country.

Digital payments, such as tap-to-go payments, have seen a significant rise over the past years. Image Credit: Pexels/Ivan Samkov

Bligh sat down with 2 GB's Michael McLaren for a conversation about these changes in Australians' finances.

'We are, as Australians, using less and less and less cash,' Ms Bligh shared, underscoring the profound implications this trend has for the banking sector.

Back in 2007, 70 per cent of all transactions in Australia were conducted with cash.

Fast forward to today, it has plummeted to around 10 per cent.

According to the Reserve Bank of Australia's (RBA) predictions, cash transactions could dwindle to four per cent by 2030.

This decline is not just a reflection of consumer preference but also a testament to the convenience and security that digital payment methods offer.

What does this mean for banks and senior customers?

According to Bligh, the reduced use of cash could alter the role and function of these bank branches.

Visiting a branch to withdraw or deposit cash could become a thing of the past.

This shift could also be evident in the mortgage industry, where 75 per cent of home loans in Australia are being facilitated by mortgage brokers who often provide in-home services.

In response, some banks have been adapting to these changes.

Westpac recently reopened three regional branches in New South Wales, Victoria, and Tasmania as new Service Centres.

However, instead of traditional teller services, customers need to access SmartATMs for cash transactions.

Additionally, these centres would offer face-to-face support for both retail and business customers, digital banking assistance, lending support and help with scams, among others.

However, the move towards a cashless society has challenges.

Many seniors may have concerns about the security of digital payments, the learning curve associated with new technology, or the loss of personal interaction bank branches often provide.

Another concern could be the accessibility of digital banking apps, as they could be susceptible to downtime.

Banks need to ensure that the shift to digital banking should be inclusive and accessible to all Australians, regardless of age or technological proficiency.

The move towards a cashless society has been accelerating.

For seniors, staying informed about these changes could be the key to navigating these changes.

Key Takeaways

• The Australian Banking Association indicated that banks in Australia could change significantly due to less cash being used.
• Anna Bligh stated that Australia is witnessing the 'biggest transformation in the history of the country' with the move towards cashless transactions and digital banking.
• The use of cash for payments has dramatically dropped from 70 per cent in 2007 to around 10 per cent, with predictions it could fall to four per cent by 2030.
• Changes in customer behaviour have been influencing the move away from traditional banking models, prompting banks to find new ways to serve customers.

How do you feel about the move towards a cashless society? Are you ready for the changes ahead, or do you have reservations? Share your thoughts and opinions about digital banking in the comments below.

 

[mylittletibbies]

We need to consider how you bank when there is no power or telecommunication towers are damaged i.e after a flood or fire disaster. South Coast NSW 2020 fires there was no power for weeks for areas. people traveling remotely in Australia and towers/mobile not working in shops to buy fuel etc.
If they want cashless to work then Australia needs full and reliable mobile coverage, lower or regulated credit card fees.

Considering the amount of staff that have been laid off since we all started using cards, etc and the massive amount banks must be saving in wages, I don't see any need for them to be charging transaction fees at all.
After all, look at the amount of money we are saving them
Not only wages , but the rent on all the bank builfings they have closed down, power used in those buildings daily cleaning. etc etc.
They should.be.paying us for using their cards!! Lol

 

[mylittletibbies]

Systems have been down and have proven that without cash, you can't do anything. Credit cards don't work, so where do we go from there? So ,if we are a true Democracy , why cant we have it both ways?

Because the bank don't make as much money that way. Their profits are obscene.
People are living on the streets, going hungry, struggling to make ends meet and meanwhile CEOs of bank's and other large companies are raking in multi million dollar salaries. Nobody, no matter what they do, deserves or is worth that sort of money
Blood suckers!!

 

[dabski2]

Considering the amount of staff that have been laid off since we all started using cards, etc and the massive amount banks must be saving in wages, I don't see any need for them to be charging transaction fees at all.
After all, look at the amount of money we are saving them
Not only wages , but the rent on all the bank builfings they have closed down, power used in those buildings daily cleaning. etc etc.
They should.be.paying us for using their cards!! Lol

Great and well put, should be sent to the likes of Anna Bligh, problem is she would just delete its content.

 

[Ludzay]

They need to consider that this drop in cash use is being forced upon us in many instances. Consider especially when you go to entertainment venues. Many are now cashless and so we are forced to use a card, generally with a surcharge! While I understand this improves efficiencies for businesses, it is not appropriate to say we are choosing to go cashless when there is no alternative.

 

[mylittletibbies]

They need to consider that this drop in cash use is being forced upon us in many instances. Consider especially when you go to entertainment venues. Many are now cashless and so we are forced to use a card, generally with a surcharge! While I understand this improves efficiencies for businesses, it is not appropriate to say we are choosing to go cashless when there is no alternative.

Exactly, we get charged a surcharge for saving them money.
They no longer have to count cash at the end of the day, nor have to take it to the bank or pay Armaguard to do it for them.
The whole set up stinks!

 

[NDA]

Since 2021, I have not had any cash in my wallet, and all transactions have been by card, most by credit card and some by bank card. It started when I was involved in an accident and spent 500 days in the hospital. Now, I only use credit cards for all payments, except for groceries online, where I use PayPal.

 

[Radiant]

No I am not ready or will be ready for digital banking. I only use cash and I’m happy with that. The digital aspect clearly suits business and profitability. I want to know how I’m spending and not rely on a Bank to tell me. I also find I spend less by using cash and avoid disputes and fees with Banks. Look at the chaos caused in Spain and Portugal last week when there was a serious and lengthy power outage.

 

[Lesley Colclough]

This move isn’t in the best interest for older Australians, when a bank lockes your card and you can’t access anything. Not even your balance that you have. And you have to go into the bank to try and get your pension. You can’t pay for anything with your card and they say that it’s for a security reason. That’s just not fair for anyone. Life is hard enough as it is without that happening. So it’s a good reason NOT to go cashless. I would be very interested to hear what other options options there are on this matter. Thank you.

 

[Leenie]

I know very well what they have said and it's NOT what your imagination is telling you.

You are a paranoid conspiracy theorist, you read into comments and make assumptions, make up what you think they are saying. And it's not you, you are following other nutcases on You Tube, Tik Tok, Facebook, etc.

You tell me to research this, hahahaha, that's funny, if you knew what I do on a daily basis you would know I'm very well aware of world events.

How can I find something that doesn't exist, that's why I asked you for an example, but if course YOU can't do that because you don't know where to look just parroting others.

WEF is investigation Klaus .Schwab and his wife Hilde after a complaint alleging financial and ethical conduct. Current and former staff sent a letter toWEF board alleging they mixed their personal affairs with the Forums resources. Schwab is stepping down As Chairman immeadiate effect. Schwab founded WEFIn 1971. He funded luxury travel and services at WEF expense, misused property and asked junior employees to withdraw thousands of dollars from ATMs on his behalf .His father was a Nazi and friend of HITLER and pears to be continuing HITLERS agenda.
Vice chairman Peter Brubeck-Letmathe is well known for declaring WATER IS NOT A HUMAN RIGHT but a commodity when he led NESTLE , one of the global leaders in PRIVATISATION of WATER? (. Something our Governments have been doing for years ) .
He has also been an aggressive promoter of GMOs. YOU WILL OWN NOTHING AND BE HAPPY? Jacinta Arden and Trudeau? Are two of their deciles . If you want anymore check out The DEFENDER.

 

[Chicky]

To use you card to pay for somethings there is percentage charge to use your card.
I will continue to use cash until either I can't or I pop off .

 

[Beany]

I don't believe that it is less cash being used, I use it as much as possible because I prefer cash to card. I have also used card and gotten cash out and then continued to use the cash I have. It is only the majority of younger people who use cards and many between teenagers and late 40's use their card via their phone. We have had a couple of internet crashes that have left people not able to access their money or pay for their items whereas those with cash have still been able to purchase what they have brought. If that doesn't warn people that if it all went crashing down and you had no cash on you it would be very hard to pay for things. Would the banks even be able to get cash out from their tellers. If they can would they have enough money in their branches, those left open to be able to supply you with your own money??

 

[Radiant]

We need to consider how you bank when there is no power or telecommunication towers are damaged i.e after a flood or fire disaster. South Coast NSW 2020 fires there was no power for weeks for areas. people traveling remotely in Australia and towers/mobile not working in shops to buy fuel etc.
If they want cashless to work then Australia needs full and reliable mobile coverage, lower or regulated credit card fees.

Example this last week’s power cuts in Spain and Portugal

 

[Robbo3006]

I call bs on cash transactions being only 10% , they do this to condition people to fall into line for the wef agenda, screw banks and the elites, we need a new French revolution, lop from the top.

 

[Marie jones]

No way leave things alone as seniors are going to find it difficult and people may as well start taking money out of banks

 

[Leenie]

Considering the amount of staff that have been laid off since we all started using cards, etc and the massive amount banks must be saving in wages, I don't see any need for them to be charging transaction fees at all.
After all, look at the amount of money we are saving them
Not only wages , but the rent on all the bank builfings they have closed down, power used in those buildings daily cleaning. etc etc.
They should.be.paying us for using their cards!! Lol

Paying us for using our money for their profits

 

[HelenB55]

I believe people should have their own choice….. CASH or CARD.

It’s not that hard……

 

[Gunpark]

I always carry a bit of cash, just to be sure, just to be sure.

 

[Soxylox]

The only reason I do my banking online is because there is no bank where I live. I would prefer to deal in cash only. I never feel safe using my card to pay for things. That is when there's a chance my money could be stolen from my accounts. I think the only reason people are using cards more is because they can't get to a bank easily. My closest bank branch is a 2 hour drive away.

 

[Tervueren]

Portugal has just experienced a complete 2 day power breakdown!! People were told it was due to Solar Flares interference!
What do you think caused this?

 

[Jest]

does not bother me. i do home internet banking. when I am out I never TAP AND GO, insert card. no fees. people who tap and go are very stupid, then whine about fees. a couple of 100's in my wallet lasts for a long time.